Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1887-12-16
Affairs of the B. and 0.

The statement of the officers OF the Balti-
more and Ohio Railroad Company, sub
mtted by the directors Saturday for the in
formation of the stockholders, as supple
mented by the letter TO the directors from
Second Vice. President Thomas M. King,
throws much light upon the operations OF
the company in recent years and the condi-
ton of its affairs at the present time. Few
documents of this character could be more
interesting or instructive. The proceedings
of the directors were also Of an interesting
nature, embracing the election to the Presi-
dency of First Vice President Sam'l Spencer;
the appointment of committee to amend
the company's bylaws; the approval of tho
500 ,600,0 900 consolidated mortgage, and the
postponement to June u, 1888, of the de-
csion as to the propriety of issuing $5,000,-
900 of 6 per cent third preferred stock.
That a new era in the history of the man
agement of the company has arrived was
indicated by Mr. Spencer himself in his
speech accepting the honorable and re-
sponsibe post to which he had just been
chosen. II cannot" he said, "arrogate to
myself the powers of my predecessors. |
shall bring TO you all the experience and
energy possess, and all my time and efforts
shall be devoted to the cause of the Balti
more and Ohio Company, but the determi-
nation of its policy and the elaboration
which should always precede action must
be largely yours" The reins of authority
will be gathered into one hand, but direc
tors of the company will be expected here
after to discharge actively the function i'm
piled In their title. The financial exhibit
shows assets of $115, las, 494 and liabilities
to the same amount, less the famous $4S,-
083,22 surplus. Upon the nature of this
surplus little light is thrown, but it appears
to be an aggregate OF the surpluses OF many
years past, which were put into betterments
and acquisitions of more or less perma-
nent character instead Of being paid over to
stockholders. What part of it would in or.
binary financing be charged to the expense
account and what part represented by issues
of stocks or bonds, it is impossible to decide
from the meagre information at hand. The
unsecured indebtedness of the company on
| Sept. 80, 1887, was nominally $11 ,14S,007
but when proper deductions are made OF
sinking funds, supplies In hand, &C., the
true amount is found to be $500 ,314. Pro
vision is 10 he made for this Indebtedness
out of the consolidated mortgage and from
the proceeds of $5000,000 of third pre-
ierreds stock, il the issue OF such stock BE-
sanctioned by the directors. The net amount
of the main line mortgages debt is $29,67S,
sos, and the consolidated mortgage is made
to secure II. 9th $50 800, 900 consolidated
mortgage bonds IS, III ,000. will be exchanged
for sinking funds to that amount in the com
pany's treasury, aud the remaining sol aga,
900 will be reserved to retire the residue O
the mortgage Indebtedness not provided fol
by existing sinking funds. Tho amoun
contributed hereafter To the sinking fund il
to be $640, $50, but IL is TO be made in con
solidated mortgage bonds, not in cash, ant
the same is to be said OF the increment o
that fund. OF the $S,l77,000 consolidate
mortgage bonds exchanged for securities il
the company's treasury $7,500000 may b,
sold, and OF this amount the syndicate en-
cages to take $5000000. The main result,
Of the consolidated mortgage scheme ap
pear, then, to be these: The company i
placed in position to obtain cash for SOM
1880 900 OF bonds, and it will be relieved
in future from making large cash invest
ments in its sinking funds In addition th,
company will have available 81 100000 o
the stock of the United States Express Com
pany and $5,000,000 of the stock of the West
ern Union Company. The directors state
ment indicates that the dividend of May II
1887, was earned, not borrowed, as often as
serted. For 1888, under the programm,
with the syndicate, the entire charges will
be $6,345, 800, or some $550O00 less than tn
total net income Of the company in 1887
} Among the other interesting facts shown il
Mr.. Kings letter this is TO be specially noted
that the cost Of the Philadelphia extension
is much less than has been often asserted
and that its prospects are better than is gen
orally supposed.